Federal Indictment Outlines Charges

September 24, 2004

The following edited excerpt from the federal indictment handed up Thursday outlines the racketeering conspiracy charges against Peter N. Ellef, Peter N. Ellef II, William Tomasso and three related companies. The term ``enterprise'' refers to the criminal enterprise alleged to have operated out of the governor's office.

Defendants Tomasso, TBI, and Tunxis, as well as others agreed to pay bribes, rewards and gratuities to defendants Ellef, Ellef II, and LF Design, as well as Alibozek and others, including but not limited to persons in whose welfare defendant Ellef had an interest, for, because of and in consideration for favorable and preferential treatment in connection with official State of Connecticut business by defendant Ellef, Alibozek and other members and associates of the Enterprise.

Defendants Ellef, Ellef II, and LF Design, as well as Alibozek and other persons in whose welfare defendant Ellef had an interest, received personal and financial benefits from defendants Tomasso, TBI and Tunxis while defendants Ellef, Ellef II and LF Design knew that such benefits were provided with the intent to influence and reward defendant Ellef and others in the performance of official acts. Such benefits included, but were not limited to, the following:

Start-up and other costs for TREA to benefit defendant Ellef and Alibozek;

Substantial business and contracts, including cash advances, to Ellef II and LF Design;

Consulting payments to defendant LF Design to cover the costs associated with the development of a business to benefit defendants Ellef, Ellef II and LF Design; and

Free rent to defendants Ellef II and LF Design.

Defendant Ellef and Alibozek used their official positions to provide preferential treatment to, as well as to perform, direct and authorize official actions to benefit the financial interests of, defendants Tomasso, TBI, Tunxis, and other individuals and businesses. The official actions that defendant Ellef and Alibozek performed, directed and authorized included:

Influencing and attempting to influence the award of loans, grants, agreements and contracts, as well as intervening in state governmental processes related thereto and thereby causing payments to be made, in order to benefit the financial interests of defendants Tomasso, TBI, Tunxis, and other individuals and businesses.

Providing defendants Tomasso, TBI, Tunxis, and certain associates with participatory status in, and material non-public information relating to, state governmental activity and decisions, which defendants Tomasso, TBI and Tunxis, and certain associates converted into financial benefits for themselves and other individuals and businesses.

Defendant Ellef used the authority of his official position within the Office of the Governor to create an atmosphere of intimidation within state government so that other state officials and employees would comply with his requests, orders, and directions.

Defendants Ellef, Tomasso, TBI, Tunxis, Ellef II and LF Design, as well as other co-conspirators, engaged in schemes to defraud the State of Connecticut and its citizens of the intangible right to the honest services of defendant Ellef and other state officials by means of materially false and fraudulent pretenses, representations, promises and material omissions and caused the use of the United States mails and interstate wires, as more fully described in paragraphs 11 through 87 of Count Two.

Defendants Ellef and Tomasso used defendant Ellef's official position and influence to extort and attempt to extort property from individuals and businesses seeking to do business with the State of Connecticut, which extortion obstructed, delayed and affected commerce, as more fully set forth in paragraphs 88 through 95 of Count Two.

Defendants Ellef, Tomasso, Ellef II, and LF Design conspired to conduct financial transactions designed in whole or in part to conceal and disguise the nature, location, source, ownership, and control of the proceeds of specified unlawful activity, as more fully set forth in paragraphs 96 through 107 of Count Two.

Defendant Ellef abused his position as Chairman of CRRA by having CRRA pay for personal expenses that defendant Ellef charged to an American Express card issued to him by CRRA.

Defendants Ellef, Tomasso, TBI, Tunxis, Ellef II and LF Design concealed their participation in and enrichment from the criminal activity by, among other things:

Defendant Ellef failing to disclose financial benefits and other things of value he received from defendants Tomasso, TBI and Tunxis, as required by law and policy;

Defendants Ellef and Tomasso together with Alibozek organizing TREA in such a way as to conceal the fact that defendant Ellef had a financial interest in the entity;

Defendant Ellef failing to disclose his association with TREA on his Annual Statement of Financial Interests with the State of Connecticut Ethics Commission; and

Defendant Ellef failing to disclose fully his association with, and financial benefits derived from, defendant LF Design on his Annual Statement of Financial Interests with the State of Connecticut Ethics Commission.